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AskAsk

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davidmcn

Haven't the solicitors discussed this? I'd normally expect there to be a retention until your liability is known.

m0bov

Your Sol (in fact on both sides) will take a retainer to cover costs once the end of year statement is produced. So it can take up to 12 months before you get some/part/none of your cash back.

eddddy

Is £500 likely to be enough to cover a full year's service charge?  If so, the solicitors might have taken account of the service charge in arrears.

Alternatively, the solicitors might be making an estimated apportionment now (maybe based on last year's bill), and retaining £500 for any final adjustments.

greatcrested

It is standard practice for a retainer to be held by solicitors so that when the final bill is submitted, the correct amount can be calculated for the seller's period of ownership. This is then paid out of the retenation, and any balance pased to the seller.

It is for the buyer (his solicitor) to ensure that a suficient retention is held to cover this, since he is the one who will end up being charged for the full year, but if you wish to assist in this then advise your solicitor to advise the buyer's solicitorwhat th normal annual charge is, and hence what your share is likely to be.

mrschaucer

The way most service charges are levied is on the current leaseholder only - the new leaseholder "takes over" the account for the property, which is why apportionments and retentions are done by your solicitors on sale/purchase.  Managing agents do not normally get involved in chasing former owners for monies owed from final service charges - it is much easier for them to bill the new owner.  Consequently a new owner needs to be happy that the outgoing owner has left enough money with his solicitor, as a retention, to cover all bills.  Any money over and above the sum needed is returned to the vendor.
Having said that, if "the council" are the people sending out the service charge bills, you really need to check what their policy is on this.

eddddy

AskAsk said:

are you saying that the council would send the whole bill to the buyer even though he didn't own the property for the whole period?  this is what my original question was, whether the council would split the bill and bill both of us, or do they not have the right any more to bill me, as i would no longer be a leaseholder at the time they get round to billing?

Yes - the whole bill will be sent to the buyer.  And if the buyer doesn't pay the whole amount, the council will take action against the buyer.

rik111

Sounds like they buyers Solicitor has cocked up and not asked for enough of a retention.... Your gain the buyers loss, I wouldn’t lose any sleep over it, not your problem, between the buyer and his incompetent solicitor.

eddddy

AskAsk said:

are you sure we can refuse to pay any excess demand for the shortage?

You have a contract with the buyer - you need to read that contract to see what it says happens if there's a shortfall in the service charge (or ask your solicitor what your contract says).

If you're correct about the buyer's solicitor being a bit 'dopey', your solicitor might have sneakily put in terms which are more favourable to you than to the buyer.

eddddy

AskAsk said:

the contract does not refer to service charge, which was why the rider was added to it for the retention of the service charge.  the rider only refers to excess charge for the period up to 31.03.2021 when final amounts are known, as the bills are based on an estimate.  

So that answers your question.  If the contract doesn't say you have to pay any excess service charge above £500 - then you don't have to pay any excess service charge above £500.